Differential responses of loyal versus habitual consumers towards mobile site personalization on privacy management

Abstract

We examine how two different underlying mechanisms of behavioral loyalty to a brand—attitudinal loyalty and habit—impact smartphone users’ privacy management when they browse personalized vs. non-personalized mobile websites. The online experimental study conducted with Amazon Mechanical Turk workers (N= 73) finds different responses of attitudinal loyalty and habit towards personalization in significant three-way interactions between personalization, attitudinal loyalty, and habit on privacy disclosure and protection behaviors. When interacting with a personalized website, highly habitual consumers without high level of attitudinal loyalty disclosed the most personal information on a personalized mobile site, and displayed the least intention of protecting their privacy on their smartphones, whereas consumers with high levels of both habit and attitudinal loyalty reported the highest tendency of privacy protection behavior. However, habit and personalization do not have a significant effect on disclosure behaviors when users have high attitudinal loyalty to a brand. Theoretical and practical implications are discussed.